Welcome to Market Catalyst. I'm Julie Hyman. We are 30 minutes into the US trading day. So, let's get to the three market catalysts we're watching this hour. First off, we'll have more on the latest inflation report as traders increase bets on rate cuts this year. Plus, the price is tight. We'll hone in on the state of the consumer as shoppers seek value as they navigate inflation. and we'll bring you the latest from Washington as President Trump looks to narrow the scope of his steel and aluminum tariffs. ...

Market Overview - The Dow Jones Industrial Average is up 280 points, approximately 0.61%, outperforming the S&P 500, which shows little change, while the NASDAQ composite is down about 0.33% [2] - The Russell 2000 index is also in the green, with discussions around potential value unlocking for small caps due to anticipated rate cuts [3] - The 10-year Treasury yield has decreased to 4.02%, marking a low not seen in some time [3] Federal Reserve Insights - The Federal Reserve's interest rate decision is highly anticipated, with expectations of a 25 basis point cut already priced in by the market [5][116] - Investors are closely monitoring Chair Jerome Powell's tone during the press conference, particularly regarding the Fed's outlook on labor and inflation [7][8] - There is speculation about potential dissents among Fed governors regarding the rate cut, especially from the newly confirmed Steven Myron [116][118] Company Developments - StubHub is set to go public after raising $800 million, with plans to enhance its profile and clean up its balance sheet post-IPO [40][41] - Apple is launching its new iPhone lineup, which includes significant design changes and improved battery life, with the standard iPhone 17 starting at $799 [58][63] - FedEx is facing a cautious outlook from analysts ahead of its earnings report, with a downgrade to inline from outperform due to slowing retail sales and industrial production [30] Analyst Calls - Loop Capital upgraded Netflix to buy, raising its price target to $1,350, citing strong engagement and content lineup [31] - Bank of America reiterated its buy rating for Walmart, increasing its price target to $125, highlighting growth opportunities in AI-driven e-commerce [32] Commodities and Economic Outlook - Deutsche Bank has raised its forecast for gold prices to $4,000 for next year, indicating a bullish outlook on the commodity [4] - There are concerns about potential inflation acceleration following rate cuts, although current long-term inflation expectations remain contained [12][25]

Core Insights - The Royce Micro-Cap Trust, Inc. focuses on long-term capital growth by investing primarily in micro-cap companies with market capitalizations of $1 billion or less [9] Performance Summary - As of July 31, 2025, the Net Asset Value (NAV) is $10.76, while the market price (MKT) is $9.47 [1] - The average annual total return for the Fund as of July 31, 2025, is as follows: - One-Month NAV: 1.89%, MKT: 2.38% - Year to Date NAV: 2.23%, MKT: 1.32% - One-Year NAV: 4.46%, MKT: 3.60% - Three-Year NAV: 10.51%, MKT: 9.98% - Five-Year NAV: 12.47%, MKT: 13.60% - Ten-Year NAV: 10.08%, MKT: 10.33% [1] Portfolio Diagnostics - The average market capitalization of the portfolio is $740.7 million [4] - The weighted average Price-to-Book (P/B) ratio is 1.8x [5] - The net assets of the Fund total $565.8 million, with a net leverage of 2.3% [4] Portfolio Composition - The top ten positions in the portfolio and their respective percentages of net assets are: - CECO Environmental: 1.4% - American Superconductor: 1.3% - Bel Fuse: 1.3% - Graham Corporation: 1.3% - Argan: 1.1% - IES Holdings: 1.1% - Universal Technical Institute: 1.1% - NPK International: 1.1% - Richardson Electronics: 1.1% [6] - The top five sectors by percentage of net assets are: - Industrials: 29.0% - Information Technology: 20.7% - Financials: 17.3% - Health Care: 9.9% - Consumer Discretionary: 9.7% [8] Trading Information - The average weekly trading volume of the Fund is approximately 660,208 shares [7] - The Fund's adviser has over 50 years of experience in small- and micro-cap investments [7]

Core Insights - The Royce Micro-Cap Trust, Inc. focuses on long-term capital growth by investing primarily in equity securities of companies with market capitalizations of $1 billion or less [9] Performance Summary - As of June 30, 2025, the Net Asset Value (NAV) is $10.56, while the market price is $9.25 [1] - The average annual total return for the Fund as of June 30, 2025, shows a one-month return of 8.32% (market: 7.89%), year-to-date return of 0.33% (market: -1.03%), one-year return of 8.64% (market: 9.34%), three-year return of 13.24% (market: 12.87%), five-year return of 13.38% (market: 14.30%), and a ten-year return of 9.25% (market: 9.50%) [1] Portfolio Diagnostics - The average market capitalization of the portfolio is $740.7 million, with net assets totaling $555.3 million and a net leverage of 3.4% [4] - The weighted average Price-to-Book (P/B) ratio is 1.8x [4] Portfolio Composition - The top ten positions in the portfolio each represent approximately 1.1% to 1.3% of net assets, with notable companies including Magnite, Bel Fuse, and Sprott [8] - The top five sectors by percentage of net assets are Industrials (28.3%), Information Technology (21.1%), Financials (17.5%), Health Care (10.6%), and Consumer Discretionary (9.8%) [8] Trading Information - The average weekly trading volume of the Fund is approximately 589,245 shares [10]